abbott. it's july 8th, 2024 and "squawk box" begins right now. ♪ good morning, everybody. welcome to "squawk box" here on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen. andrew is off today. joe's here. >> i am here. you're here. >> i'm here. the two of us. today. today. >> today. >> it's summer. u.s. equity futures at this hour under the slightest bit of pressure. dow futures down 9. the nasdaq off 14. you did have the s&p 500 and nasdaq close at record highs once again on friday. stocks have started july on a tear. the dow's actually up .23%. the s&p is up 2%.

the nasdaq is up 3.5%. what's the date today? the 8th? partial day of trading. that's big gains in a short period of time. tesla shares rallied by 27% last week. that wiped out the loss for the entire year. that came after the better than expected second quarter delivery picture. right now, those shares are down 1.5% today. month to date, up better than 25%. if you check out treasury yields this morning, it looks like the t ten-year yield is 4.31. you have bitcoin this morning as 5 5 57,457. year to date, it's up 35%. >> 54 earlier today. >> wow. >> up $3,000 from the lows. we are watching stocks in europe.

markets reacting to the surprise election result in france. the country's left-wing party won the largest number of seats in parliamentary elections over the weekend. defying a surge from the right-wing party, but le pen's party doubled the seats, but no coalition to reach an absolute majority. markets priced in a hung parliament. that's what we got for the next 12 months. >> markets are liking that. neither the far left or the far right took a majority because both have plans to spend a lot more. >> macron, it looks like the gamble paid off. you can see where the euro is right now. some breaking news overnight. boeing agreeing to plead guilty do a criminal fraud charge tied to the fatal 737 max crashes. this is after the settlement in that shielded it from

prosecution. it will invest at least $455 million in compliance and safety programs. an independent compliance monitor still be installed at the company for a period of three years. this deal requires approval of the federal judge. you have families of the victims of the crashes five years ago complaining bitterly about this. boeing also agreeing the board of directors will meet with crash victims' family members. the government deals boeing a felon. that is an issue if you look at the defense products it provides to the government. we will talk more about the plea deal with phil lebeau coming up a little later this hour. you see shares of boeing this morning up by over $1 over the five-year period since the crash took place which is a drop of 47% in its shares. >> you wonder. people on a downward decline and

reach a moment of clarity, is what they call it. >> hitting rock bottom. >> hitting rock bottom. sometimes that's a horrible accident or jail or something like that. is this it? i mean, we have seen the first roach and second roach and bunch of roaches and nonstop. is this the last roach, do you think? >> i hope. the good news in this deal, if they are spending more than $450 million on safety and compliance, they are watching that closely. it sends a clear message and one shareholders will hear loudly that you want to make sure c compliance is first, second and third on the order of business. >> boeing, good if we could say, boeing is a great american company. >> very important. >> it is. last night. i swear i've read this six times

already in the last six months. skydance media and paramount global announced they reached a deal. shari redstone will sell the family stake in the company. the breakthrough came after skydance sweetened the offer to the redstone family. now $1.75 billion. it enhanced legal protections from the shareholder lawsuits. the deal gives paramount 45 days, i'm sure they will, to find a better offer. >> this is the first time they've actually announced it. before, it's been sources say or speculation around. this was a pretty big deal for the redstone family to be able to say they have the legal protections because it is widely expected there will be shareholder lawsuits. you want to be protected from that if you are going to say okay, gohead with the deal.

45 days means game on. >> whether they are getting good deal now or not, i don't know if it is best deal. over the past five years, it hasn't been handled. >> rich greenfield said depending on who wins the next president election, maybe there is room for other days to come with a better offer. we will see where that leads. hurricane beryl made landfall in texas a while ago as a category 1 storm. officials warned of the possibility of significant inland flooding and the houston area and beyond that. the national weatherhurricane c said it is moving north and it will weaken through eastern today and the membeississippi vy and ohio valley wednesday and thursday. we will speak to governor abbott in a few minutes.

democrats have difficult broken with president biden. now, more high profile donors are pushing for biden to exit the campaign. i'm reading a really well written piece in the journal. lead editorial. the almighty calling for biden. the establishment that covered for him -- wait, there's something not right here. now they want him gone. megan cassella joins us with more. good morning. >> joe, good morning. the democrats are starting to call for him and the donor class. biden is hearing from others. he is kicking off the pivotal week after the abc interview did low l little to help him win in november. the growing group of reed

hal hastings and abigail disney are calling for him to step aside. amy goldman fowler gave more money to support his re-election. others are stuck in limbo here. $1 million has been raised for biden so far this cycle. he was planning to host a fund-raiser next month. since the debate, morgan has paused his fundraising. he told me he doesn't want to keep raising money when he doesn't know the candidate. in the fundraising e-e-mail, bin said the pundits have gotten everything wrong. he closed out the email saying he has never needed the financial support more than he does now. joe, we are continuing to see the pressure build. >> yup.

every minute that goes by. warner called off his meeting with top senate democrats, megan, because he said once it became public -- it has to be add midnight and everybody has to sneak there in an n-95 mask so you cannot see who is going in? that is chicken-esque. >> the meeting has been canceled. i would not be surprised if something else happens. now all those lawmakers are coming back to town this week, tuesday is the first time most of the folks can talk in person. the first time since the debate. tuesday is the big day for us to keep our eyes on. tonight, the other development is it sounds like the new york times reporting another phone call with the biden campaign and donors. they have done little to calm fears so far. it is unclear if there is more

they can do, but at least they're going to try. >> i don't know how it works. he won all of the delegates all along. a week and a half ago, everybody loved him. won all the delegates. i keep seeing top democrats. jerry nadler? when did he become a top democrat? >> he's the head of the committee. >> i know. jerry's the top democrat, that party's in trouble. thanks, megan. go ahead. >> i was just going to say on the delegates point. it is clear democrats are desperate to get out of the situation. the latest idea we are hearing is a blitz primary from two pretty well connected democrats started to circulate this weekend. if biden releases his delegates, they don't want the anointment of kamala harris. they are talking about a five-week mini primary at the con convention. it is just one idea. it shows you the brainstorming.

>> that would put it past the ohio deadline for the ballot. >> that's been the risk of not doing that virtual nominating process in july or august. ohio had changed its law. democrats are worried about a loophole that could potentially change it back. that is the big concern. if they get further commitments from ohio, that could be enough to get democrats. >> if the democratic party thinks they can pass over a sitting vice president, i'm just going to start buying the p popcorn. i'll have to buy a popcorn maker to watch that play out. to try to bypass vice president harris? yeah, i'll pull up a lounge chair. the democratic party, the party of people that would never, ever do that. this is really going to be

something to behold. then there's an election. >> that's why they do it in a snap election. a blitz. >> you can't do it. you cannot do it. the uproar will be heard around the world. impossible. you cannothead if you want to t. we'll watch. when come back, we'll look at this week's squawk planner and the inflation data and the kickoff of earnings season. we'll get to that after this. and texas governor greg abbott is tracking hurricane beryl. "squawk box" will be right back. tailor-made for trader minds. ♪♪ go deeper with thinkorswim: our award-wining trading platforms ♪♪ unlock support from the schwab trade desk— our team of passionate traders who live and breathe trading. ♪♪ and sharpen your skills with an immersive online education

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introducing the comcast business 5-year price lock guarantee. powering 5 years of savings. powering possibilities. on this week's squawk planner, inflation data in focus. we will get the latest consumer price index on thursday and that will be followed by producer prices on friday. earnings season kicks s off thi week. we will hear from pepsico and delta airlines. our next guest says investors are increasingly concerned about volatility amid political turmoil. we will bring in amy wu silverman at rbc capital mas markets. amy, concerned about political

volatility. we have not seen it so far. >> the market has been san docsanguine. we are tenfold volatility points below what is normal. below what we've seen in past s cycles. i think the french election, becky, is a good example. you got the volatility with the win from the right and then what happened with the left . it canceled each other out. that is why we call it a paddling duck market. >> you think there are risks associated with it. you mentioned too sanguine with all this. >> i'll give you one interesting stat. prior to the presidential election, you had volatility on the november election day actually starting to bump up a little. after the presidential debate, it actually compressed.

what was the market trying to tell you? i think it was sort of saying, okay, if you get on the democratic side enough of a volatility will put trump ahead. maybe that makes the election more decisive, not less. that is one explanation why you see volatility compress. it is a little misguided that a lot can happen. we just know we have a long runway before november elections begin and you have seen in past cycles it is just not that clean cut. that is why the expectation of volatility is not there yet and start to rise. >> volatility and vix have been low for a long time. why is that. >> the rise of zero data trading and massive volatility with the etfss and the growth you have seen on that. also, just economically things are better than investors have expected and that certainly is part of it. the most important thing is we have gotten to a point where

investors are concerned that the implied volatility is so low that we almost reached a lower bound. the issue is when that happens in history, it has more symmetric room to move up. correct. that's the concern that i hear from the investors who are focused on risk in this markets. >> how do you protect yourself? >> the protection is easy. the issue is you could have said that four months ago and would have been true and you would have burned up your premium. there is a cycle of boy or girl who cries wolf and that happens enough time and people don't want to play musical chairs and that's when you get some shock that people are not prepared for. >> it is weird with the geopolitical situation around the globe and what we are facing and none of that has managed to shock markets.

>> i was a financial engineer in college. i can tell you it is just math. the waeights of the market righ now. when you look at the equal weight, you see a massive divergence in performance. as long as we continue to benchmark to the dow, it is driven by a couple of stocks and tha those stocks are doing well. >> what issue beyond this volatility factor? what else are you following at the moment? >> what is interesting to me is the cross asset application of this. so, one thing we have seen is when you get these political events or when you get these geopolitical events, things are happening in the cross asset markets. you are seeing the energy markets move or the u.s. dollar move or the sovereign market move. that has not fed back into equities and hasn't fed back

into equity volatility. the big question we hear from the asset investors is, is this a catch up or is this wrong. this is on investors minds and why they continue to ask about the history. >> it is the handful of stocks leading and nobody else has caught up. maybe it is the handful of stocks got further ahead with the artificial intelligence and the money into that? it's not like the other stocks are falling. they are not catching up as rapidly. >> there is an issue it creates which we started calling benchmark fomo. if that wasn't your initial thesis, it has to be now. if you are benchmarking to s&p and don't have the massive overweight, you have to play the catch up.

we sit down with the investors, there is a fact you have to play the benchmark fomo. if you get any indication that the fundamentals are not there and we are not getting the secular growth, i just don't through they are as embedded or all-in as the sentiment would tell you right now. >> the other thing people would say is there is other money on the sidelines. if you are sitting out and waiting, the fomo keeps building from that wherever you find it. >> one thing with options is we look at how much positioning has already happened. that was true at the beginning of this year and peaked in march with the call demand. the people who wanted to get long, you would see that in the outweighing of call options. that has happened, but we haven't seen it incrementally. >> risk is to the down side. >> correct. >> amy, thank you. >> thank you. coming up, we will talk to phil lebeau about the boeing

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boeing reaching a deal to plead guilty in the case of the crashes of the boeing 737 max planes five years ago. phil lebeau is joining us with more. phil, good morning. >> reporter: becky, this was a filing late last night. it is a guilty plea by boeing. let plea go over the terms of the agreement with boeing and the department of justice. they jointly filed this with the court last night. the charges conspireing to fraud

the government. this is a felony charge. the fine that boeing will pay is $243.6 million. it will invest $455 million in making sure that it is in safety and compliance standards it is supposed to meet. an independent corporate monitor will be approved by the judge to make sure boeing is doing what it should be doing with safety and compliance. the focus for that monitor will be quality control. this has been at the heart of the problems for boeing and it's what triggered the doj to say wait a second. you violated the agreement from the crashes in 2018 and 2019. this does not sit well with the relatives of the 737 max

families. we knew they would not be happy with this agreement. javier lewis issued this statement overnight. the penalties imposed on boeing are not substantively different than those that failed to change boeing's safety culture and that resulted in the alaska air door blowout. this further complicates or at least another factor that boeing chairman steve mollenkopf will look for the next ceo of boeing. whoever the candidate is, who he is having discussions with or maybe having discussions in the future, knew this was coming. but this is another factor whoever is hired will have to consider because of things like bidding on defense and space contracts. i mention that it is a guilty plea for a fraud charge. that factors into future bids on defense contracts that the next ceo will have to keep in mind.

boeing believes that you can get a waiver, let's say from the defense department, becky, if there is a charge or if there is a program that they bid on and let's say boeing has the best bid. they believe the department of defense will be able to issue a waiver because right now, if you have a guilty plea to a felony conviction, in many ways, you are not supposed to win a government contract. but, according to those who i talked to at boeing, they believe there is some wiggle room there. if it's the right contract and boeing is the right bid, they could receive a waiver from the department that is overseeing the program that is being bid on. >> phil, it is such a strange thing to say this is a felony agreement and that boeing is a felon, but no individual, really is responsible anywhere for anything? >> reporter: right. >> i understand why the families would be upset. >> reporter: there was a trial and there was an individual from

boeing who was put on trial for charges related to the 737 max program as it was being designed. they could not get a conviction. the department of justice could not get a conviction. the belief is this is the strongest charge that they could make sick atick against boeing. i'll give you an example. the families would like to see the former ceo charged and brought to court. the doj does not believe they will be able to get a conviction on that. in order for that to stick, you would really have -- you are going through a high bar and the doj believes this is the strongest conviction that it could get boeing to agree to and it could make stick with boeing. i understand the frustration. lord knows the families of the 737 max victims have every right

in the word to be furious. they believe boeing has not paid a high enough price. from the doj perspective, they believe this is the strongest that can stick against boeing. >> phil, thank you. >> you bet. when we come back, we have more on the political drama in washington. we will talk about what we expect to hear from lawmakers with congress back in session today for the first time since that debate. later, the chairman and ceo of corning live. the first time wendell weeks has been on cnbc in a number of years on set. "squawk box" will be right back.

hello. i'm ethereum. and i'm big finance. you look really tired. just calling it a day. but it's 4 p.m. yeah, and i've been working nonstop since 9:30 this morning, so. 9:30. you don't say? yep. you'd want a little shut-eye too if you'd been moving billions around the world. well, actually, i do. you know, stablecoins, nfts, loans. people can access me 24/7.

what? but look, everyone's different. you should get your rest. you'll get after it tomorrow. tomorrow's saturday. [ethereum] monday. you'll get after it again on monday.

good monday morning. welcome back. every day's great, right? >> it is. great to be alive. >> welcome back to "squawk box." live from the nasdaq market site in times square. checking the futures. the markets look like everybody on a monday. >> after a long holiday weekend for me. >> i was disjointed.

i was out. i was in. trying to sleep. >> fireworks. going to bed. >> you will realize some day, the alarm clock never goes on. >> you wake up before? >> it's not right. bitcoin has rebounded sharply from some of the lows we saw earlier today. it went through 60 on the way down like hot butter through a knife. yes, i know. it got all the way down to 54. >> you intentionally mix your metaphors. make sure you're paying attention. walking the cake? >> that's a good one. a walk in the cake. >> or a cake walk. >> pulled the bubble. popped the cork. coming up, congress is back in session today. we expect to hear from more democratic lawmakers about their support or lack of support for president biden's re-election

bid. politico's mike allen will be here next. you can get the best of squawk box on your favorite podcast app and listen anytime. we'll be right back.

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i mean, if the lord almighty, get out of the race. >> that was president biden on the interviewwith abc that aired on friday. joining us to talk about the election is axios co-founder mike allen. 22 minutes to ask the question when are you leaving. not one immigration question. not one question about anything

other than you are too old and you need to leave and president biden had to answer it 22 different ways when it was all said and done. was that a probing interview, mike? >> joe, the donors and lawmakers we talked to say how many questions or how many answers there were, they weren't sufficient. they were not satisfied with what president biden had to say. joe, this stages we heard that donors and lawmakers go through were sort of shocked when they watched that interview and sad when what was going on with president biden who have known biden in his days as senator and chairman. now they are mad that he is not acting on the signals he's getting. joe, however bad the public conversation is for president biden, i can tell you the behind the scenes, it's worse.

>> i didn't think he was that different in that interview than any other interviews in the past year or two. that's why they should be mad at themselves. one guy who said it was true, mike, when carvel said that which wouldn't -- it's a different guy. this is a herb stein quote. i always saw watching it play out is painful. it's taken a while. every day it takes is a day they are not talking about the insurrection or the felonies or the end of democracy as we know it. it's all about biden. they are not going to let that continue much longer. >> that's a great point, joe. two things about that. one, for a long time both republicans and democrats have said if this race is about trump, he loses. if it's about biden, he has a

better chance to win. this race has been all about biden and the trump people have been enjoying the week of coverage of that. there's another time imperative here, joe. just a week from today, the republican convention starts. the month after that, the democratic convention starts. if democrats are going to make a change in their nominee and i can tell you lots of donors we talked to and senators and members of the house expect that will happen. the way one top operative said it to us is every day that goes by is a disaster. we expect if it is not president biden, we expect it to be vice president harris. getting that in place will take time. they announced a thursday news conference at the end of the nato summit, tuesday, wednesday,

thursday here in d.c. next week, joe, they announced the president's schedule ten days out. very unusual. the president is going to be in texas and nevada during the republican convention talking about civil rights and talking about unity in america. so, the white house sending every external signal they can full speed ahead. >> yes. i will say it's just watching it play out, mike, the first couple of congress people -- both of them were congress men. they are in congress, but it wasn't like a leading -- nadler now. ha hakeem, speaker, knnot speaker,

but minority leader. nothing from schumer or pelosi or mark warner. once it becomes public, he really can't continue to meet with other senators to what to do? they're that feckless about facing the elephant in the room? >> make, you hear people say one thing publicly and one thing privately. >> he vevery much, becky. one said to me, the sh -- will hit the fan. they are home for the july 4th recess. this is all text messages. for today, the house and senate, it is in person. that will be a very different ch chemistry and very different dynamic as they talk about their own races and talking about democrats hoping to keep the senate and hoping to flip the house. democrats, who are worried about

the possibility that this is for the reasons that you guys talked about at the top, giving trump an edge or giving trump a better chance. that's why things could move very quickly this week. that's why the white house is setting out those tentpoles saying we're engaged and we have this important work to do, but those members who you are right, all of the leaders have been very cautious. everybody is looking for signal noticsignals in the hours ahead. >> mike, for a while, i could feel that they were headed that way and then, you know, looking into the abyss of what would happen. then seeing vice president harris and coming to grips of what that would mean. when would it become clear as a living, breathing individual, any living, breathing individual, might be better for democrats? i hate to say that.

might be. then again, they will be stuck with the realities of harris at the top of the ticket and i wonder what that would mean. oh, my god. we are getting what we wish for. are we sure we want this? >> i talked to a harris supporter who talked me through a very specific plan for her to run. so, she, of course, was a prosecutor, elected d.a. in san francisco. she was the attorney general in my native state california. they would use a frame of prosecutor versus convict. harris versus trump. she helps the democratic ticket with young voters. she helps with the women voters who are swing voters. there is a plan to show her strengths if she goes to the top of the ticket. >> exactly. i can see it building. i can see how they're going to

frame it and everything else. i'm just not sure whether that's going objto be a widely adopted move for voters. >> joe, i'm going to go out on a limb and say you're not the target audience. >> what? >> target audience for that message. another point they make with her at the top of the ticket, also rowe instantly goes to the center of the conversation which is something that democrats have been pushing for behind the scenes. the second gentleman, her husband, doug imhoff put it dobbs and democracy. >> it will be her. there's no way to go around her even with whatever they're talking about. >> joe, that's interesting. that's another sign of the weakness of president biden is a lot of the big donors that i've been talking to and a lot of

your viewers, frankly, they already moved ahead and they're debating whether it's better for president biden to appoint or endorse vice president harris at the top or whether there should be a process in the race before the democratic convention starts in chicago on august 19th. one idea that's out there that's been talked about at the highest levels of congress is could you have some regional debate? many primaries have been out there where delegates, the democratic delegates from the southwest, northwest, west, mountain west, get together and basically audition really quick the governors that want to run or senators that want to run with vice president harris. the problem with that plan is there is no time.

b, how do you figure out who's on that stage? >> i do not recommend they go around here. i do not. especially the high-minded democrats. the high-minded woke democrats. good luck with that. that's why i'm buying a popcorn machine. >> vice president harris is the epic advantage for what you are talking about. >> exactly. i'm not just buying some popcorn. i'm buying a popcorn machine. i'll sit back and watch that. they will eat them inside out. thank you, mike. when we come back, a big weekend at the box office for "the minions." we will show you the early numbers for "despicable 4." that's next.

eli lilly is buying morphic therapeutics for $3.2 billion in cash. morphic develops oral treatment for inflammatory bowel diseases like kr, hron's. it would be nice to have oral delivery for the weight loss drugs. >> there are some who have raised the questions about whether an oral delivery system would raise the risk of side effects because it has to go through the gut first, and does either raise some of the risks or does it lower effectiveness and different things. >> we had gottlieb on last week

talking about the rare but raised risk of going blind from taking ozempic. >> wow. >> for me that would be like -- >> no thanks. >> yeah, i think i'd just stop eating. >> look, again, this is a situation where it's a drug that's very important for people who actually really need it but not for sort of a vanity play, if you're looking to lose ten pounds. >> if you microdose it -- people are doing it already. people already want it. the needle might stick it in your leg is not ideal. >> yeah. let's get to the weekend box office. universal's despicable me 4 brought in $75 million during its debut weekend. if you include the july 4th holiday, the domestic total reached 1$122.6 million. the told for the movie so far is nearly $230 million. coming up, surprising

results in the french elections over the weekend, expected result in gridlock for the foreseeable future. we're talking richard haas after a quick break. >> announcer: executive edge is sponsored by at&t bids. next level moments need the next level network. i'm really just here for the at&t internet, it's super-fast so, any pre-launch concerns? what if nobody buys them? that's mean or, what if everybody buys them? oh, i hadn't thought of that that's probably not gonna happen can we handle that kind of traffic? the network can handle it! i downloaded eight hours of true crime stories just during our last video call i'm learning a lot [crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck.

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[car honk] first. today, we're first together. we love you, mom and dad. thank you so much for making it possible. and now you can finally put yourselves first. vanguard investments and advice. for college, retirement, and all of life's firsts. that's the value of ownership. the left beat the far right in the snap presidential election. joining us with more on global elections including those in uk and iran, is the council on foreign relations president emeritus richard haas, a senior counselor at center view partners. let's talk this through. in some ways it looks like

macron's bet played off to go ahead and say we're not going to have the far right win. they took a huge number of seats. >> the good news is the far right lost. the bad news is the far left won, and for macron either way it's not good. it's not a -- he can't be happy with the outcome, and now he's going to have to try to rule france without a government. >> and the far left has said, by the way, we're not really necessarily interested in going along with the centrists on anything. >> the far left is an amalgam of four or five parties. he's going to try to split them apart. there's a raging antisemimite, truly antizionist. the question is can macron do it. he's going to figure out how to get through this for a year. my kbguess is he's got a yoear

make something work. if that still doesn't produce a government, i think pressure's going to grow against macron for new presidential elections. >> you immediately said incumbent, that's what i've been seeing too, the uk, and france. so i've also seen people say, well, the left won again and they're comparing it to the 2022 that it was not a red wave, its after -- it wasn't aeeven a red trickle. they're already comparing it, they thought the right was going to win and the idea that the right is ahead here in this country, now they're grasping at this saying that the left -- on the other hand, it's anti-incumbency, which would be against. >> i think that's the much bigger theme. think about the indian elections, prime minister modi didn't do nearly as well. think about south africa, for the first time in post apartheid history, the anc didn't get a majority. so clearly that's what's out

there. if you're joe biden, if you're the democrats, you've got to be worried because it's both left and right. it's just basically for change. it's against the status quo. >> incumbency in his own party. that might be the real problem. >> there's that as well. >> the markets are a little relieved by this result. they didn't want the far left or the far right to really take ove over. both plan to spend a lot more than macron. >> their agendas both sides were rad radical. i was surprised a little bit that the markets in france were as positive as they were. i think it's more of what they avoided. the question is can you govern, can you get an agenda going. i think that's a real issue. in britain you've also got issues with that. there's not a lot of money to be spent. taxes are already high. in britain, you had the in incumbent labor party without an

agenda. as a result, they don't have much in the way of a mandate. so again, it's a little bit hard to know what they're actually going to be able to do. >> when it comes to iran, the turnout there was very high too. the other thing that all of these elections have seen incredibly high turnout. >> iran was -- that's interesting. the candidate who won was not favored by the regime. the real question there is what power does he have. you've got the supreme leader,ed irgc who are running a lot of foreign policy. he might have some control -- >> revolutionary guard. >> he might have control over domestic issues. he's signaled a little bit more freedom for women, that sort of thing. he obviously would love to fete out from under some of the economic sanctions. in order to do, that you're going to have to influence iranian foreign policy and iranian nuclear policy, and that's what nobody knows. will he really be able to do that. he could quite possibly have the death of the supreme leader and that would be ultimately a more significant transition in iran.

a lot going on there. >> ultimately, though, you think when you start looking at these elections around the globe that for the most part they're not going to be able to do as much leading to more gridlock ever everywhere? >> exactly. you don't have a conconsensus. you have much more consensus against what there is, not much on where to go. there are some trends in the west. clearly if you look at what the brits are doing, they're looking at emulating the biden administration, the chips act, the ira. we've seen a change in the economic model toward larger government roles, more protectionist. >> more protectionism and the potential for tariffs no matter who comes up. >> i think the old paradigm has shifted and we're seeing a more intrusive government in many aspects of economic policy. >> most of the time the markets like gridlock, at least here in the united states. is there a point where if it's too grid locked and nothing gets done for decades it starts to create a problem? look at things like immigration.

>> yeah, you can't meet your basic challenges. >> putting a budget together. >> that was going to be my example. there's a thin line between gridlock, between avoiding bad things and dysfunctionalty. it's almost a negative side of gridlock you can't address. i think markets initially like, over time grow a little bit disaffected. >> richard, thank you. >> it's like the first clue, you've got something called a supreme leader, you got probably a troublesome country, i think, for us. >> actually, the bigger signal is anytime a country has the word democratic in its title, you know it's not. >> north korea and iran. >> people's party. >> great gig if you can get it, you know, to be actually -- actually be. >> as the old president for life. >> whoa, frightening what passes for government around the world. thanks. we need you to figure it all out i guess. >> then we're really in trouble. >> can you sleep? >> well, thank you. >> really? >> because what are you going to

do? it's like, yeah. >> thanks, richard. >> good to see you. it is just after 7:00 a.m. on the east coast, and you are watching "squawk box" on cnbc. i'm becky quick along with joe kernen. andrew is off today. it is a busy week for the economy with fed chair jay powell set to testify before the senate and the house on tuesday and wednesday. that's followed by the june cpi reading on thursday, and then we get the ppi numbers on friday. sky dance media and paramount global reaching a deal to merge. this deal, which was approved by a special committee of paramount board members will see sky dance buying paramount's controlling shareholder national -- it will then merge sky dance with paramount. and the minions delivering fireworks at the box office this holiday season. coms score says despicable me 4 brought in more than $122 million since its opening on wednesday. look at the futures this morning, slightly red so far. we've got the dow down 16,

nasdaq down about 12 points or so, let's get to dom chu with a look at this morning's premarket movers. what's going on, dom? >> good morning, joe, good morning, becky. we'll start with the big headlines out of dow component boeing. those shares up are fractionally, about one-half of 1% of premarket shares. the aerospace defense giant has agreed to plead guilty involving boeing model 737 max jets. bo boeing has agreed to pay $243.5 billion in fines and invest $455 million in safety and compliance programs. it will be subject to oversight by an independent third-party compliance monitor. that plea deal need the approval of a federal judge before taking effect. maybe clarity there helping boeing shares to the upside. we're watching shares of nvidia, the world's biggest computer chip company by market value has been moving between modest gains and losses.

up about one quarter of 1%. a couple of analyst teams were out with price target revisions. reiterates a buy rating. they're citing robust demand for nvidia's next gen artificial intelligence research. its target to 150 bucks from 125 citi citing similar themes showing strong demand for chips. we'll cap things off with a check on shares of service now which are lowered by roughly 3%, just around 5,000 shares of volume. the provider of cloud based corporate work flow solutions is getting downgraded from a sell rating to a prior neutral. a new target price gets established at 640 bucks. that's about 21% below where it closed on friday. a delay of realizing the full benefits of their generative ai offerings until at least next year. for more on those, head over to cnbc.com/pro. subscribers get full access to detailed analysis of those

analyst notes, joe. i'll send things back over to you and becky. when we come back, texas governor greg abbott will join us to talk about hurricane beryl, which just hit ground in texas earlier this morning. we'll also talk about his economic development trip to asia and the political drama in washington, d.c. "squawk box" will be right back. i can't believe you corporate types are still at it. just stop calling each other rock stars. and using workday to put finance and h.r. on one platform. tim, you are a rock star. using responsible ai doesn't make you a rock star. it kinda does. you are not rock stars. (clears throat) okay. most of you are not rock stars. oooh. data driven insights, and large language models. oh, that's so rock roll. it is, right. he gets it. yeah.

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[ethereum] monday. you'll get after it again on monday. the moment i met him i knew he was my soulmate. "soulmates." soulmate! [giggles] why do you need me? [laughs sarcastically] but then we switched to t-mobile 5g home internet. and now his attention is spent elsewhere. but i'm thinking of her the whole time. that's so much worse. why is that thing in bed with you? this is where it gets the best signal from the cell tower! i've tried everywhere else in the house! there's always a new excuse. well if we got xfinity you wouldn't have to mess around with the connection.

therapy's tough, huh? -mmm. it's like a lot about me. [laughs] a home router should never be a home wrecker. oo this is a good book title. texas governor greg abbott is on an economic development trip in asia with members of the texas business community. he was in taiwan over the weekend. he's in south korea today, and will wrap up in japan.

johnson & joining us now from seoul, texas governor greg abbott. we'll start with some issues at home, governor, thanks for joining us. hurricane beryl expected -- or has hit -- kind of interesting, between galveston and corpus chr christi, and when i hear galveston and hurricane, i can't help but think of the 8, 10, 12,000 people that died way back in 1900, but at least at this point with satellites and everything else, we have early warning. what were the preparations this time for beryl? >> listen, they are always extensive. texas has probably the top division of emergency management in the country, and i just got off the phone with the chief of that division, and they had prepared days in advance with supplies, with support, with response, and a massive triangle looking where you are on the map there, where the hurricane eye came across strectching all the way over to louisiana and

stretching there just on the texas side of shreveport. there's going to continue to be a massive rain event all the way from the gulf coast up to northeast texas. so we're concerned about a rain and heavy rain challenge that we're going to see in texas as well as the winds that continue to whip through the greater houston area, and will continue- a high wind event all the way up through central east texas. >> and we wish -- everybody's in our thoughts, wishing for the best possible outcome we can have down there, governor. you are in a different part of the world right now, an economic development missionto taiwan, and we can remember some previous time when politicians visit taiwan, sometimes it doesn't please the mainland. i don't think you think about that. in fact, you might think about it, actually enjoy it a little bit. >> let me tell you what happened. texas only has -- before now,

one business office in another concern, and that's mexico. this past session, the texas legislature actually passed a law establishing an office in taiwan because we support taiwan both as a country but also economically. trade is already robust between texas and taiwan, and what we've done over the past few days in taiwan just strengthens that and will mold it even more. so i met with -- there's a picture of a meeting with the president of taiwan. we entered into an economic development agreement with taiwan, and we officially opened the texas economic office in taiwan. >> yeah, and everybody knows you don't mess with texas. i wonder what kind of signal that sends. it's a very important area for technology, and we can, you know, we're hurrying as quickly as we can to onshore a lot of that stuff b, but how many year

are we going to need taiwan. does it remaining independent is that part of what we need to ensure. >> well, listen, i think the globe needs it. the globe needs peace and prosperity across the entire area. also, as you point out, as far as technology is concerned, taiwan plays a pivotal role. tsmc is the prolific chip maker. it's just one of many companies that play such a very powerful role. that said, one thing that we found both in taiwan and now in korea, and that is a -- well, we'll call it a near shoring or ann onshoring back into the united states. especially as it contains high-tech and semiconductors. one quick example here in korea. that is samsung has developed a massive semiconductor facility in the state of texas. texas is the number one semiconductor producer in the country. here's the deal, we've met with a lot of companies in korea now that are interested in trying to

set up operations near samsung just outside of austin, texas. that's what you see happen once you have a large company establish a large presence in a state like samsung has established in texas. >> governor, switching fwegearso you expect president biden to last the week as the presumed presidential nominee for 2024? >> that's anybody's guess. you got to ask him about it. you hear one story one day and another story another day. and it's just obviously the biggest guessing game in the united states right now. but anybody who seems to try to make a prediction seems to turn out wrong. >> who would -- if -- obviously you support president trump, who do you think his team would rather face, president biden, vice president harris, or i

don't know. take your pick, somebody else. >> i'll give you the answer that you don't want to hear, you may not likement. that is, listen, when you look at the issues that americans are confronting right now, and they're both concerned and angry. concerned about inflation hitting their pocketbook. and i know you all talk about interest rates and inflation rate coming down, but listen, the average american is still paying way too much at the grocery store. paying too much for gasoline and things like that. inflation is still taking a bite, and they need results. not rhetoric about that. the other main issue in the united states is illegal immigration. not legal immigration but illegal immigration. it's caused chaos and death in the state of texas, in new york and other states across the country. so those are issue where is it doesn't matter which democrat is going to be on the ballot. they are going to be tied to those issues that will ensure that donald trump is going to be elected president this november. >> journal piece today, what is

imperative is that trump -- former president trump in the vice president selection picked someone that, you know, maybe they're implying that the democrats made a mistake by not picking someone necessarily that's ready to be president immediately and they're saying that that's really important. do you have -- who would your pick be for president trump? >> so i'll give you an interesting observation. my memory goes back to the eisenhower presidency all the way through the biden presidency. every single one of those presidents had as a vice president a former member of congress. there's a reason for that. if you want to get your agenda passed, you've got to get it through congress. you need somebody with the experience in congress to make sure it can get done. there's several people on the list for vice president who qualify for that. i think all of them will be terrific, as well as some who have not served in congress. >> and other people say a governor is more important as an

executive. i'm trying to think not all the governors that are in the running served in congress, did they? >> well, so, no, the governors who are in consideration for tdid not serve in congress. there's maybe one governor who did, but some who did not. but listen, the reality is donald trump is going to have a top quality candidate available for him who will help him run the office, more importantly before that, help him win the election. but most importantly serve the american people. and we are going to ensure that the concerns that average americans are facing every day are going to be addressed and that starts with containing inflation, and instilling safety in our communities and our country and across the entire country so that we don't have illegal immigration causing the problems it's causing right now. >> byron donalds, is he too far right, do you think, for your

case? got to bring it back a little bit -- i don't know, dilute the maga perception of an all maga -- like j.d. vance might not be great according to some people. >> yeah, on donalds, isn't he a member of congress from florida? >> yes. >> so that's a situation where you can't have both the president and vice president -- >> right, i know, aimsame with rubio. >> what do you think the chances are you're going to see rubio resign his office and create an open seat for this. i don't know. >> wishful thinking, maybe he's pretty good, both those guys. we'll see. governor, good luck. no delay. we have delays from people that we talk to across the river in new jersey, but not to where you are. but not korea, amazing. it's technology. thanks a lot. we'll see ya. >> good to see you, joe. >> safe travels. still to come this morning,

we will talk bitcoin and technicals with katie stockton. and later, corning ceo wendell weeks will join us in a rare and exclusive interview. his company just raised second quarter guy cidance. it's being driven by strong adoption of its new optical connectivity products for generative ai. these are the fiber that they need so much of, the connective fiber. that stock right now up by 7.5%, and wendell will be sitting down with us in less than half an quk ho'sim "sawbox" will be right back. at ? maybe rich is less about reaching a magic number... and more about discovering magic. rich is being able to keep your loved ones close. and also send them away. rich is living life your way. and having someone who can help you get there. the key to being rich is knowing what counts.

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take a look at bitcoin, the cryptocurrency fell under 55,000 for the first time since february after mt. gox set up again making repayments about a decade after it collapsed into bankruptcy. joining us now is katie stockton, fair lead strategies founder and managing partner. also a cnbc pro contributor. i don't think we've ever started with bitcoin when we have -- >> not recently at least. >> but i don't think it's necessarily starting with the tail and the dog. i mean, there are times when bitcoin can actually be an

indicator of what to expect in the nasdaq or just the risk on trade. >> correlations have been pretty high too recently with the nasdaq 100 and bitcoin, and then you start to think about them all as these risk assets, right, more broadly, but of course the nasdaq just keeps going and going and going, and bitcoin has broken some support, so the 60,000 level is what we were watching, andst it's not a majo support level. it resolves a trading range to the downside that suggests that we'll see more corrective price action. next support for bitcoin is roughly 51,500, so still some downside from here, still with a long-term uptrend. we're big believers of just having a small percentage of a portfolio in bitcoin almost regardless of the price action. we still want the long-term trend on our side. a call option to take advantage of the upside long-term. >> you think 51 doesn't hold? you think the 40s is --

>> that would suggest there's something structural sort of amiss from bitcoin from a technical perspective. it would jeopardize that long-term uptrend to some degree. we would expect that. we see conditions return close to that level though. >> the s&p and the nasdaq are so nvidia heavy. >> it's really wild. >> is that not troubling yet? it's still not troubling? >> nvidia has consolidated recently, and yet now -- go ahead, look at apple. look at meta, look at tesla last week. these are short-term breakout, and they've driven a short-term breakout from what we call a flag pattern. flag patterns do show positive short-term momentum. the hard part is, of course, it suggests that we're still going to see more of this narrow leadership. it's not especially narrow breadth. it's the leadership. you're not getting outperformance anywhere else outside of these mega caps really. >> why aren't any of these

underlying things troubling for the bull, the state of the bull. >> you know, i've stopped relying on negative divergences to get bearish. they do resolve ultimately, they would show maybe a less healthy tape. that doesn't mean it can't sustain an uptrend. our thought is that for the second half of this year we'll' more volatility. the uptrend will maintain itself, we'll see more corrective phases. ideally we'll see that kick in. we'll finally show relative performance. >> do you factor in money on the sidelines. >> more anecdotally. we don't measure it ourselves. we have conversations, of course, with our clients about it. we sense that there is still that, right? we have people that want to put money to work. the frustrations are running very, very high with the narrow concentrated leaderships. people don't know what to do with that. i feel like there's a lot of opportunities out there that overbought conditions are not that widespread considering how

the major indices look. so you can look farther than the large technology sector and find some really interesting technical setups, even in the commodity related stocks, which have had a pretty good face of underperformance of late. now with energy, if you look at crude oil, it seems like it's pushing out of a long-term triangle formation. it might be worth revisiting some of those stocks. even some of the material stocks. copper showed some signs of downside exhaustion too. >> just the nasdaq blows me -- do you remember when we built -- >> yes. >> the new building in inglewood cliffs, and it was supposed to be the nasdaq. >> we called it the nasdaq 5,000 building because we were at 3,000 or 2,500 on the nasdaq and like we built that at the top, and it was -- the nasdaq is at 18,000. >> isn't that wild? yeah, yeah, it's really remarkable. we can arrive at from these flag

patterns pretty impressive upside targets. that all said for the s&p 500, i don't remember the number for the nasdaq, it's about 57, 55. which, listen, we want to be on the right side of these trends whether it's narrow or not, and the market is telling us it can still go higher. >> the pandemic wasn't that long ago. i still got masks lying around like in my glove box. >> i find some sometimes too. i found an old bag that had them. >> the s&p was 2,300. >> isn't that wild? >> 2,300 and hell was coming according to some people as then they were can covering -- >> when we come back, president biden doubling down on staying in the presidential race despite a number of democrats calling for him to step aside. the latest from washington and ddreat n from former senor ju ggg will be next. "squawk box" will be right back.

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as president biden fights for his political future, members of congress are returning to capitol hill as democrats weigh whether biden should stay in the race. emily wilkins joins us right now with more, and emily, we've heard that there is going to be

much more direct talk at this point with congress back in town. >> absolutely, becky. i mean, more democrats called for biden to step down over the weekend, and we are expecting even more democrats to raise concerns publicly once congress gets back into town this evening, and then they actually have some of their first meetings tomorrow. so now we have five democrats that have now publicly said that biden should step down. they include angie craig, a house democrat facing a difficult re-election who said in a statement that she no longer believes that biden can effectively campaign against trump. she said that there are simply too much -- there is simply too much at stake to risk a second donald trump presidency. that's why i respectfully call on president biden to step aside as the democratic nominee for a second term as president and allow for a new generation of leaders to step forward. now, during a call with house democratic leaders last night, at least four of the top democrats on committees said

they wanted to see biden step down, according to nbc. congressman adam schiff, who is running for the california senate seat told "meet the press" that there are concerns with the impact that biden could have on down ballot races if he doesn't perform well. >> at present our down ballot candidates in the senate and house are doing well. they're all ahead. they are running well ahead of the president, but you can only run so far ahead of the president. >> many members and staffers i've spoken with said they have deep concerns about biden's ability to continue in the race, but most have been waiting for this week when lawmakers will finally be able to discuss the issue in person. congress returns to d.c. after july 4th recess this evening, and becky, they're also keeping an eye out for how biden's going to do in nato, an eye out for poll numbers. they have these concerns, but they're still waiting for more information before making a final decision. >> thank you. joining us with more on the party's next step is former

republican senator and former new hampshire governor judd gregg. welcome, thank you very much. you sent joe and i notes last week and talked a little bit about how these things work. you've seen it happen before. you were a close confidant and you worked with senate majority leader trent watt. how do these things usually come about? what's happening behind the scenes, just from your years of political speexperience. >> this is one of the most extraordinary periods we've experienced in our structure as a country and a constitutional democracy. you're about to see the president of the united states who is the nominee of the democratic party be asked to step aside, and that's going to happen. why is it going to happen? well, it's going to happen because of fear. fear of losing the presidency, the house and the senate. the democrats do not want to have that happen. they see it happening if joe biden is the nominee because you've got 70% of the american

people, more than 70% of the american people now saying he shouldn't be president because he isn't -- he's frail to be quite blunt, and you only need 51% to win an election. donald trump is in a unique position. if he remains quiet as he has, he's going to be probably the only one who wants to keep biden on the ticket. it happens very quickly. that was my experience. i was stunned by how quickly it happened with senator lott who was a great guy, good friend. but once the critical mass is reached, once you have that momentum where you've got a lot of people who are senior in your party saying this isn't going to work and our party needs to adjust or else we're going to take a terrible defeat. remember, you're talking about in the house everybody's personal election, which is their own personal experience, which really creates fear. then action occurs, and i think that's going to happen fairly

quickly. >> senator, adam schiff is welcome, congressman as a senator but joe biden's not welcome. that's the standing of the current democratic party. where's mrs. gregg, you sent me that note, that rino judd gregg out of here. you're trying to railroad poor joe biden out of here. >> he's speaking to what he's seen before in politics. >> sometimes you can't speak what you actually feel or mean, judd. >> well, let me tell you what kathy gregg says, she says that joe biden should say to joe time to go home. >> she says he's got to go too? >> the interesting thing is you're talking about somebody who is running -- >> you want all those delegates. what, they didn't know? they didn't know -- >> of course they knew. >> of course they knew, but he won them all fair and square. >> excuse me, the last election he was able to run by staying in his cellar because of covid, and now he's not able to hide, and

the more he goes out, the more it becomes apparent. the interview with step nop lo stephanopoulos which should have been a home run for him, it showed a frailty, mental and physical frailty, and that -- you can't have a president who's going to be 82, 83, 84, 85, and 86. i mean, the common sense of the american people is extraordinary and they see that and they understand that, and the democratic party understands it now, and what they fear is loss, and they don't want to lose the white house, the house, and the senate, and so something will happen here, and in the end -- >> judd, the reason i wanted to have you on is because for the most part everybody you talk to saying one thing privately, and then they'll say something else on television. you're not afraid to speak. you're not in the race right now. you're from a different party, so you can speak pretty clearly about what's happening from your

own experience right now. what's happening behind the scenes, how quickly do you think something gets decided? it may not matter at this point if he steps down, the ability to decide on someone else, is that going to be vice president kamala harris, is it going to be somebody else? it seems like it's awfully late in the process for any of it. >> it is extremely late and every day it becomes exponentially more difficult. what i think will happen is that senior leadership, not committee chairman, senior leadership, pelosi, jeffries, and maybe even schumer will go to him and say game's up. you know, you've got to step aside. and at that point he may or may not agree, but at some point he'll have to agree, and when that happens, i think it's fairly clear that kamala harris will be the nominee. who she picks for vice president is going to be a critical decision.

who trump picks for vice president will be a critical decision. this will be one of the first election i can remember where the two vice presidential candidates will be really porn. in the end kamala harris will be the nominee, and it will be an election between harris and trump. >> deal book has a new piece that says major donors are debating biden's futures. how big of a role do the donors play in this. we keep using donor class, which is pretty obnoxious. how big of a say do they have? >> the people who have the real say are the people up for election or whose position in the government is going to be directly threatened by having an annihilation of the democratic party, which is what will occur if biden is at the top of the ticket in my opinion in november. those are the folks who are fearful and are getting more and more fearful, and people like pelosi and jeffries and schumer are going to start hearing very aggressively from the people

that they represent in their houses that we got to do something. we've got to do it fast. and that's why i will be surprised if something doesn't happen by the end of the week. >> wow. judd, thank you, and again, thank you for saying what lots of other people are saying but won't say on air. we always appreciate your candor. >> it's the democrats that won't -- >> yeah, but most of the republicans won't say it either. >> that's because they want biden. >> they want biden, exactly. >> that's why i'm surprised mrs. gregg went that way. i thought we could count on her. you should have a united front. joe already won all the delegates. it's not fair, pulling the rug right out from under him. it's not fair. >> is this why you hear, though, that the president is being -- not taking a lot of calls. they don't want him hearing some of these things necessarily? >> well, i think he hears it. i think he probably understands it completely, but you're the

president of the united states, you've got a certain amount of hu hubris. the simple fact is he does not want to depart, but in this business when your time is up, your time is up, and it's pretty much -- it's, you know, as franklin roosevelt said, if you want a friend in washington, get a dog. that's the way this is coming down. >> that business and many others too. judd gregg, thank you, senator. >> three dogs. >> three friends? i got a cat. i'm out of luck. when we come back, goldman shs ceha a former dallas fed president robert kaplan will join us. "squawk" will be right back.

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your family and the way you bring people together. that's life well planned. big week for inflation data. let's bring in rob kaplan, a current vice chairman at kblaks. will we get to 2 soon? is that really doable in their favored way of looking at pce? >> it's going to be slow to get from 3 to 2 and the issue will be services. the economy is cooling. we're moving in that direction, but i think the last mile will be more challenging, and there's a few reasons for that.

globalization has become deglobalization. we've got substantial fiscal spending and deficits that are actually still stimulating the economy. you've got a number of other issues, so i think the challenge for the fed is this last bit will be slower, and they're very aware of that, i think. >> but the jobs market at this point, which is maybe starting to show some signs of weakening, are we close enough there and can the fed says we're on our way to 2, so we're in a position where we can ease a little. >> i think if i were sitting in my former seat, i'd be getting ready to cut the rates in september. i wouldn't make any commitments between now and then, but i think they're positioning to cut rates in september, and they'll take it then one meeting at a time. there's enough cross currents that i think the smart thing to do is be short on prognostications and long on risk management, and i think

risk management will dictate a rate cut in september. >> and you wouldn't have a problem with that. it's not moving the goal post, per se, of inflation. >> i think as long as they see continued progress, i think you've seen enough cooling in the economy that i think they could justify a cut in september. but again, they'll rate wide up until game time to make that decision. >> for us to be able to afford the debt service on the national debt, what do we want? do we want lower rates because it's easier to pay, or do we want a stronger economy for tax revenue? >> i mean, i think the challenge looking beyond the next few months is in an aging society that's highly leveraged, interest expenses are going to be a trillion dollars next year. we've got to find ways to grow faster with lower costs. so what are examples of ways to grow faster? immig immigration, legal immigration reform. >> legal. >> maybe a regulatory review,

cost benefit analysis across the economy that looks at ways to unleash more growth and still have strong enough regulation. i think this trend toward deglobalization and tariffs probably is going in the wrong direction, and i would guess there's going to be more review of appropriate, you know, trade policy, and then this fiscal spending probably is -- it's creating growth, but it is organic growth or it is a little bit more artificial. i think we've got to get back to ways to grow the work force and improve productivity, and that's still the most important issue for managing the debt. >> if we all got along in this world, we'd still have some offshoring, wouldn't we? >> yes. >> there are examples of things that are done for lower costs around the world that strategically are not that important for us to do, and

trade is a strategic asset. and one of the big issues that's a sensitive one is we're building 20 or 25 battery plants in the united states where china makes those lithium batteries for a third to half the costs. we're building them, we're creating several hundred thousand jobs related to those, but will they be globally competitive without tariffs or will the next generation leapfrog those. those are the kinds of issues we're going to probably have to come to grips with. >> like the onshoring, which we all want. we want the jobs here and that almost paves the way for tariffs which are inflationary. >> we're going to have to find ways to create more organic growth, sustainable growth. >> don't worry about it, ai's going to do all of that for us. >> so even on ai, we're going to have improve early childhood literacy, secondary education, skills training to allow people to make the shift. if your job gets eliminated because of ai, the economy

benefits if your next job you continue to improve your productivity. there's got to be more focus on education. so these longer term structural issues aren't as exciting as talking about the fed funds rate, but they're essential. >> robert kaplan, thank you. >> good to talk to you. >> you live in >> robert, kaplan thank you. you live in texas still? >> reporter: i do. >> all my exes live in texas, no. where? >> in dallas. >> thinking about texas. it's a category one, right? >> it'll dissipate by the time it gets inland. >> i just keep hearing houston and galveston. as many as 12,000 people died, and they had no idea it was coming, it's cloudy out there. >> as you heard from the

governor, texas is prepared for this, i think they'll manage it well. when we come back, corning's ceo wendell weeks on the guidance and the economy. that stock up sharply. we'll talk all about it when "squawk box" comes right back.

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coming up, corning ceo wendell weeks joins us. then later how to build a happy life podcast host and aei president earthur brooks is wit us.

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welcome back, everybody. material supplier corning raising the second quarter guidance expecting sales of $3.6 $3.6 $3.6 billion compared to previous guidance of 3.4 billion. and experiencing above the high range of 42 to 46 cents and largely driven by acceleration in a.i. joining us to explain is wendell

weeks the chairman and ceo of corning, thank you for coming in. >> always a pleasure. >> you can the stock up by 7% this morning if it's here it's the highest level we've seen corning shares in two and a half years. what's happening in a.i.? because i'm not sure everyone understands the connection between corning glass and a.i. >> a.i. needs a second back end network of data centers and in this network each gpu is connected to every other gpu in the cluster. this creates the so-called neuro network that you hear about. it happens to be that requires about 10 times the number of fiber connections in this network versus a traditional data center. >> because a.i. needs so much more computing power. so many more processes that have to take place. >> and most importantly so many

more connections because that's how you create the neuro network. each gpu is connected to each other all with fiber. so this not only creates more volume for us, which is great. but it also creates the opportunity for innovation because we're seeking to fit 10 times the amount of connections in the same space. and that's what we've done. we've invented new fibers, new cables, new connecters and new custom integrated on optical solutions to reduce installation costs, reduce overall time, reduce space and reduce carbon footprint. and it is the rapid adoption of the innovations that drive our performance. >> you work with the data centers? nvidia? how do you have the customer connections? >> all the above depends on the time frame. the major cloud and data center operators of course but also

other major players in the ecosystem because we're the connectivity that brings the hardware to life. >> what have you seen that led you to raise guidance? what's happening specifically? >> we put together a plan, we call our spring board plan, which shows that we have both cyclical training that should add $3 billion in annualized years to corning. because we have the production capacity in place and the technical capabilities and the costs are already in our financials we should generate really powerful profit and cash flow on the revenue growth. this spring board plan is happening as we speak. quarter one is low and our preliminary guidance and update shows our revenue growing 10% and our eps growing more than

20% sequentially. so we're off to a terrific start. >> how much of that is a.i., how much is other cyclical issues? >> a.i. drove the outperformance. we're also seeing strong secular trends in our other market access platforms, be it in other pieces of optical communications in display. >> so a strong global economy that took off, last year was a rough year for corning and part of that was, i believe, the supply chain issues that caught up. explain what happened then and what's since changed. >> revenues were down because markets were down, markets were down because of supply chain sets driven by the pandemic and macro economic factors. what we're seeing now is we're seeing beginning of a reversal of those cyclical trends. but more important for us are the secular trends.

we don't count on people buying more stuff. we count on people buying more corning in what they buy. auto is a great example. since 2017, the amount of vehicles sold in the auto market are down about 5%. our revenues are up 70% as car companies adopt our new innovations to help support cars that are more connected, that are cleaner, that are more aton mouse. >> what about things that we can read into, say, iphone sales? >> so the overall phone market has been relatively flattish over the last few years. of course, generative a.i. offers the opportunity to cause a significant refresh cycle in hardware. that's how we'll all interface one way or the other with generative a.i. so he would expect that to come back. >> what's the biggest challenge

you face, wendell? ? >> for us right now it has been that we were patiently investing, for instance, almost four years, in these new generative a.i. products. and when the macro economics aren't great, it always is harder to sustain that commitment. and so that's what we've done. so it's delightful to be here today and actually see when innovations work out. >> you expect this is going to be three years in the making? you're one year into a three year plan? >> sort of one quarter into a three year plan and we expect our strength to only grow. >> the stock today up 3.7%. we know you don't speak frequently but we appreciate you coming into "squawk box" today and spending time with us. >> it's my pleasure, thanks for having me. it's just after 8:00 a.m., thanks for watching "squawk box"

on cnbc. the dow jones and nasdaq are now indicated higher. let's get to mike santoli with a look at the markets. >> hovering near the highs last week the market kind of lived up to the reputation of the early part of july being pretty strong, at least the index level. 5,500 on the s&p 500, as well as 20,000 on the nasdaq 100, which i look at pretty closely as well. you know, the market keeps outracing the consensus to some degree, the sell side, either it's raising targets or surrendering to the index but the median is right around here, 5,600 so it's not as if people have tremendously bullish expectations at the moment although arguably you have kind of built in an optimistic scenario at the index level for the growth stocks as well as potential soft landing. take a look at the the way the s&p has outpaced not just the

rest of the world but also the average s&p 500 stock. the equal weighted s&p looks like the all country world index excludeing the united states indexes. so basically the median stock around the world looks similar over the last year and it's the secular growth part of the u.s. market that is accounted for tremendous amount of upside and wealth creation. the inflation numbers coming following the somewhat softish under the surface jobs report on friday. the ten year yield has kind of rolled over once again, a series of lower highs that you see out there. 4.3% is a level we were at last august and didn't really present that much of an issue. so obviously this is registering some of the down side surprises in the economic numbers we've seen but also solidifying expectations that the fed might experience something to start

cuts. we're joined by ed yardeni. good to see you. >> good morning. >> just overall looking at 30,000 feet seems like the labor market might be starting to ease a little bit which would be probably friendly for the fed's proposed action, inflation also under control. how are you feeling about all these things? >> i kind of view what's going on in the labor market as normalization. i think everybody's looking at the data and saying it's getting weaker. it's only getting weaker relative to some of the pandemic related points -- data points that we had a year or two ago. the fact of the matter is, most of the indicators suggest that we're back to a fairly normal labor market where jobs increased by 150 to 200,000 per month. wages continue to go up, beat consumer price inflation and the

consumer has the purchasing power to continue to spend which is what drives the economy. >> any eyebrows raised for you when you see the nasdaq just almost -- it looks like a stilt amount and seeing that across the board. any trouble signs there? >> we've both been doing this for a while and both lived through the 1990s experience. so there's a bit of deja vu all over again when we look at the market and compare it to the late 1990s. i think we're -- i think the way i would describe these things is we're in a slow motion melt up. the market for the past few weeks has continued to march higher to new record highs and it's done it on disappointing economic i said caters because i think investors have concluded let's not worry too much about the economy slowing or even a

recession because if that were to become a significant risk the fed will move quickly to lower interest rates. i don't think the fed needs to lower en lower interest rates but they look like they're ready to low e them if necessary. >> we'll get earnings starting the week and immersed the next couple of weeks. do you have an s&p earnings estimate for the next 12 months or so and what type of multiple would you need to get where we are on the s&p? >> i think we'll do $250 a share this year up from $250 a share last year. i think next year we'll do $270 a share and then $300 a share. by the end of the decade i think we could be looking at $400 a share. i think becky did an excellent interview with the head there of corning and that just demonstrated that the a.i. story is legitimate. there's a lot of companies that

are benefits from a.i. not all of it is going to turn out to be as magic as being touted but a lot of it will be so. i'm looking during the second quarter for a lot of companies to give us specific examples of how a.i. is starting to make a different in their productivity and cost cutting. >> all that said, ed, do you spend any time losing sleep over how much money we owe? the federal government owes at this point? >> i worry about it during the day. at night i tepid to sleep pretty well. look, you and i have been doing this for a while and anybody who's been doing this for a while can recall that the deficit issue has been a day of reckoning issue for a very long time and the day of reckoning just keeps getting postponed so i'm still in that camp that it's a problem. i tend to be an optimist but i

can't put lipstick on that bpig and i think my thinking is the day of reckoning will come and when it does come it will be a political solution. it's a man and woman made problem. it's not like at some point we can't come one a program that over a ten year period reduces the outlays or growth of outlays relative to taxation and taxation has increased. but for now janet yellen figured out a way to calm the bond vigilant tees down. any time they complain she says okay we'll do more in bills. in addition the inflation numbers are great and they're coming douchb to 2% i think quickly. and that too will placate the bond market. >> we need higher inflation to make future debt payments less -- >> that's an interesting point. they keep doing more in bills

when they can't get the notes. >> they've been doing that for a while. >> ed, thank you. >> thank you. when we come back, the american enterprise institute arthur brooks joining us on the state of the presidential race. and we'll bring you the very latest on the drama surrounding paramount. stay tuned. you're watching "squawk box" and this is cnbc. "all eyes on me" performed by gi-yan ♪ all eyes on me brand new drip is what they see ♪ ♪ these diamonds, diamonds on my teeth ♪ ♪ brand new whip is what they see, yeah ♪ ♪ in my bag like a bunch of groceries ♪ ♪ all this cheese and greens just come to me ♪ ♪ look at me on the go. always hustling. eyes on me ♪ ♪ all eyes on me, brand new drip is what they see ♪ ♪ these diamonds, diamonds on my teeth ♪

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the future of paramount global is finally settled. we think it's merging with sky dance that's the word today. julia boorstin joins us with the details. >> the deal is done, paramount global announcing late last night it has unanimously approved a two-part deal in which sky dance media acquires

national amusementment and then sky dance and paramount will merge in what they'll calling new paramount. the ellison family and redbird will invest $7 billion to acquire national amusements. sherry red zone will receive 23 per share in class a stocks. the new chairman and ceo of the combined company will be david ellison and jeff shell, will be its president. sky dance saying it's released that the new company will be positioned to improve profitability, a nod to recent struggles especially as it works to drive profitability and streaming. in a letter, redstone notes the deal is expected to be completed in 2025. and the co-ceos will remain in

place until then. this agreement has a 45 day go shop period where paramount's board can solicit alternative proposals. but a month ago they rejected the sky dance deal, the deal has effectively been shopped around at least a bit. now the company is hosting an investor presentation at 8:30 a.m. eastern, in about 15 minutes. so i'll be listening in for more details. becky? >> julia, the idea here was that what happened were two key things, first of all they raised the price for national amusement so the redstone family gets a little bit more money. second of all, they agreed to legal considerations what's that mean? if there are shareholders lawsuit that follow that a lot of people think will come. all of that goes to sky dance? all the risk on that? >> yes. so effectively this was a key thing that happened last week that enabled the deal to be finally closed after much back and forth.

really since the beginning of this year and one thing that sky dance and redbird agreed to do, in addition to making sure that shari redstone was paid than the revised deal rejected. and there is a lot of concern about shareholder lawsuits and there have been multiple steps taken to try to mitigate that one was about a month and a half ago, sky dance and redbird sweetened the deal to class b shareholders and recently the reassurance they would cover the legal costs. >> you mentioned it's been shopped around a lot probably why they were able to get them to sweeten the deal to some extent but 45 days that tells everybody put up your best offer or else. >> yes. this go shop period is common. it's typically done for these kinds of deals. what's happened up until now is maybe a little less common.

it was several months ago apollo and sony were looking at a potential offer and interested in the paramount global assets and splitting them up. and then interest from other billionaires and aic and dairy bil billiard. so it's not like it's not been out there. but now this is a specific time period that can anybody best the specific deal that we have a term for. >> thank you. coming up a top name from coindesk helps us make sense of the renewed volatility in crypto. but should investors expect tesla to keep running hot after the last week. toni sacconaghi joins us next.

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regulations have only been in full effect for a few months but many of the largest tech companies are already in regulators' cross hairs. we keep hearing different companies every day, steve. >> it's this cascade of litigation and warnings coming out. these are called the digital markets and digital services act and they were designed to target the biggest companies in the world and do things like forcing apple to allow third party app stores or stricter content guidelines for social media companies like meta. even though they had years to comply, the european commission say they're not doing enough and violators risk being fined 10% of global sales if they don't make the changes they're asking for. the ec started investigating companies on compliance as soon as the laws went into effect. there's been a flurry of

pushback in rekrcent weeks, ear findings said apple violated laws. and they're opening a new inquiry into extra fees charging outside the app store. meta got a similar warning, planning to charge users to not be tracked for advertising violates the eca. and they asked amazon for more information on compliance and how it recommends products on the platform. companies can't favor their own products over third parties. x is expected to get a formal notice soon that it's been violating content moderation rules under the dsa. it doesn't stop with these laws. separate, in late june the ec told microsoft it was being

ab abuse i've bundling the teams app. and french regulators are preparing to charge nvidia for anti-trust violations related to the chips it makes for graphics processing and the a.i. training. and these rules are already having a chilling effect. both apple and meta said they're withholding launches of a.i. products until they're confident they can comply with the new laws, guys. >> it drives me crazy. >> i know. i saw something earlier today i was looking for it. there's a difference. there's statism there and innovation here. you don't need innovation if you can just -- >> that's one of the biggest criticisms of the laws. the eu is behind, protecting companies like spotify, for example, and maybe even epic games at the expense of the biggest most profitable companies. >> why develop your own if you can glom on. >> these are not new ideas we

haven't passed here in the united states similar legislation or anything coming close to that, there's some anti-trust cases working their way through the doj and ftc. they 'not unique but the eu did it. >> you complain about fees that add up and worried about the competition. if you're worried about something do something about protecting children online. if you're not going to do anything to lift a finger to protect children online but go after stupid stuff like this saying they're being abusive by bundling teams with word. >> yes. >> you have to be kidding me. >> that's a criticism for the eu and all the lawmakers here. we can't pass protecting little girls online from feeling suicidal. >> or little boys and little girls from adult predators. >> that's also a problem. >> we don't care about anything that matters. we care about the stupid stuff that only hurts innovation. >> the tech companies have

little incentive to do anything about it. we've seen it over and over again, the decisions they made behind the scenes not to make decisions to protect them. you know what meta says now they say that's apple's problem and google's problem. they run the stores, we just run instagram. >> instagram is the biggest problem with teen girls feeling bad. >> and every time legislation comes up they try to water it down and kill it. i don't take them serious on that. this is very real, going on in the eu and forcing apple, resisting changes like this for so long -- on friday, epic games the fortnite company they were trying to get their app store eu, denied twice for something minor and petty like the buttons look too similar than the app store. epic games went public and apple reversed it right away. it is making apple change its

tune and these other companies because in apple's case they could have $40 billion or more -- >> apple protects my privacy. >> that's the way a lot of people look at it too. but it affects google, amazon, meta, x any day now is going to get the warning. it's hitting all the companies hard. >> thank you, mr. gq. >> mr. gq. >> you never wore the same thing twice. >> of course i do. you just never notice. >> who notices more than me. >> that's true. you comment every day i'm here. but gq, i'll take that. i love that. >> now that makes me sad no one said that to you. >> mr. gq? >> no. i'm not a fashionable person.

>> shares shot up by 27% last week for tesla and wiped out losses from 2024. tesla is expected to face challenges it's facing right now just with more competition according to our next guest. joining us is toni sacconaghi from bernstein he rates under perform with a $120 per share price target. tesla is almost 250, so far above your price target. what do you do at this point? >> good morning, becky. tesla has had a great run, up 25% in the last week, almost 40% in the last couple of weeks. it's clearly riding momentum of better than feared results. but this is a company whose deliveries were down 5% this quarter, 9% last quarter. frayeding at 125 times earnings. there's anticipation things may

get better but they're still not good and there's anticipation about a robo taxi event in early august. we could continue to see some momentum in the stock but this is meme-like quite frankly. the valuation is disconnected from the fundamentals. the company was supposed to earn $7 in earnings this year. consensus estimates are now $2 and the stock price is not that different. it's really about enthusiasm that things may get better and tesla may say something exciting at its robotaxi announcement. but the end of the day stocks get measured on cash flows and supercash flows we see a different in the earnings and cash flow power and the company's price. >> i hear your point but that's the same argument that the shorts have been making against tesla for a very, very long time

to their great display. i just wonder, do you keep your $120 price target or is there a point you have to say, forget it. we're back to earlier valuations of tesla and i'm not going to stick to it, or do you? >> look, i mean, of course, any investor has to be open minded about what a company may or may not do. so if we did see a path where tesla could be a leader in a atonomous vehicles. of course we have to adjust our future estimates and price target but at this point we don't see that. we believe that autonomy is a ways out and we don't believe that tesla will uniquely solve that problem. waymo is working at this, doing trials since 2012 on

self-driving. tesla has not done any public trials. not to say tesla won't do well in self-driving. it's just not something that it necessarily will be able to exclusively do. and you have to almost believe that to get to the types of valuations that tesla's stock is currently trading at. >> let's shift gears and talk about apple. we just heard -- i'm guessing you heard the report that we just went through about what the eu is doing focussing on the big companies and apple in particular. does it worry you about the eu's influence on this? what do you think of the big run we've seen in apple shares over the last several months? i should point out, you were right on that, you had an upgrade in late april, and the stock is now at 227, what do you think happens there? >> regulation has been a threat to apple the last several years

in the u.s. and europe. the dma ruling is really around the app store. the app store in europe is less than one half of 1% of apple's total revenues. so even if regulation did force apple to make concessions and that business was compromised, it's pretty immaterial. i do think apple has a strong consumer value proposition. i think you were talking about that earlier. consumers enjoy the app store. it's easy to use. apple makes sure every app is approved. and there's no -- there's no pornography or anything else that's inappropriate in the app store. so, i do think apple does a really good job and ultimately any legislation is not likely to either be material in terms of the size of that business and i think it's going to take a long time to play out.

i think, in terms of the stock, investor sentiment is shifted. apple perceived as being a laggard in a.i. i think the belief now is apple can be a leader in a.i. we think earnings next year could be close to $8, at 30 or 32 times you see a stock price at 240 or 250. we certainly think that's achievable. >> toni sacconaghi. toni, thanks a lot. >> thank you, becky. >> when we come back, tharur brooks joins us for a state of the conversation on the presidential race and how it has the american public feeling. stay tuned. you're watching "squawk box" and this is cnbc. with unified data storage from netapp. with the flexibility to run workloads across any environment, providers experience less downtime, giving them more time with patients. make amazing happen.

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nearly a dozen democrats in congress have called on president biden to reconsider his bid for re-election. but the president has vowed to fight on. joining us right now to talk about leadership, the oftentimes difficult act of giving up the re reins is arthur brooks, a professor at harvard. watching all of this, what are the lessons you're taking away?

>> obviously it was pretty disturbing what we saw last week and a lot of people are questioning president biden's capacity to lead for another four years. but beyond that, what he's doing is acting incredibly defensively towards the people who care about him the most. this brings up a point for everybody who watches "squawk box." leaders watch this program. and the question is, are you writing the end to your own story? leaders have to do this. if you want to be remembered in a good way and leave your organization in a good place. you can't write your story as you go along and hope it ends well you have to right the end of your own baz ook as well. if you don't it's what we've seen in politics for the last two weeks. >> you say the people who care about him the most but his wife and family are standing around him saying yes, we want him to continue running, that's the narrative we've heard. >> who knows what's going on. one thing we know right now, you can have an administration

that's insulating itself to such an extent that the media and not the american public know what's going on. this is of great national importance to all of us and the fact we didn't know any of this, suggests to us that the government is willing to gaslight us to a large extent. who knows what the interior conversations going on are but the people who love us as leaders should be telling us the truth and we should be in charge with what's going on at the end of our own careers as well. >> joe made the valid point that this is someone who has already gone through the democratic primary and has won all of those votes from those who will be at the convention to be nominated. >> and everybody was fine with it, arthur. and don't tell me they didn't know, because we all knew. can i write my own exit? is taking me out on a slab -- is that okay to have that as my -- as the end -- can i plan that for the way i'm going to go?

>> don't do that. >> why? >> i don't recommend that, joe. part of the reason is you'll be remembered as someone kicking and screaming -- >> i'll remember that. that's fine. >> also you want to leave an organization that's in good shape. you want to leave a country or family in good shape and that's what leadership is all about. great leadership is measured by what happens after you finish. because you're responsible for what happens after you finish. one of the founders of carlyle, a close friend of mine, dan daniella told me, i asked him, how do you know it's time to leave a ceo job dan? he's seen the beginning and end of hundreds of ceos' careers. he said, look there's only two choices you can leave before you're ready or on somebody else's terms. choose wisely. leave a little in the tank. leave before the very end. don't go out kicking and

screaming around the people saying come on, dad, give me the keys. nobody wants this. >> i guess. okay, let me put it in another analogy. what about somebody like tom brady who was told he had to leave the new england patriots, they were sorry about that decision z decision. >> they were. and it came time to leave the career and i'm sure it was a struggle for him. he knew better than they did he had a little bit more in the tank, a lot more actually. >> to win the super bowl. >> we know it was hard for him because he enjoyed playing football and it was his entire identity. for leaders watching this right now and nothing else but their careers, that's the problem because retiring means dying. retiring means nonexisting. you need to start cultivating your spiritual life, family life, friendships, love relationships in your life before it's time to go so you have something to go to.

>> is that what you did when you left aei. >> i did. it was the advise i got from dan and many other leaders, including political leaders who left gracefully and not with this force and resistance. so i got ready. i announced 16 months in advance. i worked hard to get a great successor, somebody better than me, and i doubled and tripled down on the things i wanted to do in my life, which was so important to me. >> arthur you've talked to a lot of people all the time. you're always asking these sort of questions. i just wonder what you think is happening behind the scenes and what you think the future is for the country at this point because we're not just talking about a ceo position? we're talking about the head of a country. >> i think it's a huge mess behind the scenes to be sure because nobody knows quite what to do given the fact you have the leader of the free world

who's resistant to leaving and many people around the country and the world who think it's time for him to go and they don't know how to do that because we have a system that lends itself to seniority, loyalty, it doesn't lend itself to merit. the greatest country in the world should be a meritocracy. that's a big problem on its face. here's the point of all this -- after all this is said and done. america is going to be fine. why? because the democracy is stronger than these ridiculous things that we're seeing going on right now. the drama we're seeing which is political entertainment to a certain extent and we notice that what governs or country is the free enterprise system and capitalism. that's the reason despite the craziness people watch "squawk box" and not the political shows. >> ever since clyburn decided

biden would be better than sanders, the democratic party has been whipping it. until the debate. so i have no pity for the position they put themselves in. rfk jr., nobody else had a chance. and they didn't care, as long as they could. as long as joe biden was president and they could control what was going on, they were only too happy to dupe the entire country that this guy was sharp as a tack. and the media was complicit. so i have no pity whatsoever. >> it's disturbing. we have an administration more concerned with staying in power than being honest with the american people. but sooner or later the truth comes and the american system will be able to handle it. it's going to be a wild ride for sure. >> you're making an argument for a new generation of leaders all the way across.

the idea of meritocracy, not loyalty. >> absolutely. this is incredibly important. and part of the problem we have in our system right now is that the two-party system is governed by these private organizations that are gate keeper to who can get ahead in the political system. we have democracy sort of at the general election level but anything before that is not very dra democratic and that's the problem and that's why we have a political class getting older and older. and younger people who want to get in business, want to be successful leaders say why would i get into politics where you have to wait until i'm 75 years old to have a shot at important positions in leadership. by the way, why would i do it when i have members of the media pawing through my trash and having to explain something i did in college to my kids. why do i need that. that's going won with our political system and it has to

change if we're going to be excellent. >> arthur brooks, as always we appreciate it. >> thank you, becky. thanks, joe. >> we'll live you're right. coming up the second half of the year hasn't been great for bitcoin. we'll speak with the top official from coindesk. take a lack at j.p. morgan, the bank reporting earnings later this week. wnad tead of that, wolf research dogredhe stock to peer perform to outperform knowing some valuation in buyback concerns. stay tuned you're watching "squawk box" on cnbc. helped pay for medical expenses, groceries, rent. it really helped close that gap. (whisper) go, go, go! (group) yay! go aflac! go duck! get help with expenses health insurance doesn't cover. find an agent. get a quote at aflac.com. wish we had aflac on our team. you can! (♪♪)

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welcome back to "squawk box" everybody. the furlttures are higher this morning. at this point looking at the dow futures up close to 50 points. the nasdaq indicated up by 5. the treasury markets you see the tonyear yielding 428, two year

at 462 and we'll continue to keep an eye on it. bitcoin coming off a nearly 10% down week. it fell on friday as investors focused on a $9 billion payout from a collapsed crypto currency exchange. joining us andy bear, coindesk head of products. that's part of it? >> that's part of it we care about two things, adoption in the long term but we have to look at flows in the short term. so 2024 has been a two-act play. the first quarter was really strong uptrend we unlocked so much with bitcoin spot etfs no one wanted to get in front of the rally, the demand work, structure worked flawlessly. q2 it fizzled we've been wandering since then and now it's all about supply from the governments that seized bitcoin. >> how long does that last?

>> it's finite. this is clean up f. but the best news is there's not supply for the next couple of months even much more significant than this again and again and again, always just to see higher highs and higher lows. >> totally agree. the finiteness and just can't emphasize enough this is taking care of old business. it's finite. this isn't stuff that we would expect to return in the future. so, we are in a down trend right now. our trend indicators have been pointing down since mid-june, so investors who are looking short-term to look at the trends and when they re-establish themselves will be in better shape. >> can you -- i mean, i don't know if i would if i were you, but can you venture a guess what the low would be? can you venture a guess what the next high would be within the next two years?

>> yeah, we don't -- we focus more on the shape of the trends than actual price predictions. we want people to think about this as a store of value over the long-term, and to really -- the best thing you can do is maintain your confidence. right now, we're in a down trend both for bitcoin and ether, so this may be a time to sort of watch and keep, you know, eyes on your currency. when the uptrend starts to re-emerge, that's, i think, our strongest conviction about when to get back in with conviction. >> because when it was at 20 and went to 4, how do you stay convicted? >> it is hard for some, and we actually have trend products to help people kind of survive those periods, to have a sense of what's going on, but you know, zoom out long enough, and you'll see that it's been a -- it's been a great asset to hold on to. >> i know. i think it went from $65 to $17 or $15, didn't it? >> we have had tremendous tests

of faith in this 15-year network effect, finite supply currency. one thing i think that will help a lot of investors is breadth. once we get a little broader, we get outside of bitcoin, we get outside of bitcoin and ether, which right now make up 75% of the market cap of all crypto, and i mean, this, when the paint was drying on this very studio 25 years ago, the qqq came out to help people access the top 100 names and the future of finance, so our coin desk index helps people do the same with the future of crypto. that's trading overseas in the billions. there are funds here, smas here, so breadth and diversification will help sort of cushion the blows for some of those really faith-testing moments. >> are you looking at it as digital gold or as a functional payment mechanism? >> store value for bitcoin. ether is where stablecoins,

tokenization, and smart contract platforms are all going to clear, and then you have 23,000 other assets, some of which are going to do well, some of which aren't. buy the index. get ahold of the whole asset class. the winners will find their way in there, and you know, you can take it from there. bitcoin will always be separate. it's the oldest. it's the purest investment case, so i think people really want to look at that separately. after that -- >> what percentage of gold's market cap should bitcoin have? within five years? >> you know, think about it this way. when you look at the price of bitcoin, look at the denominator, look at usd. so, i'd rather really think about the usd part of bitcoin over usd than comparing it to gold. >> when you look at what gold's valued at, it's over usd, so it's the same -- >> it's the same idea. i just think, think about what you think about the dollar and think about what you want to replace it with.

gold is, in its physical form, it's hard to move around. >> that's what i mean. there's no reason it shouldn't be just 10% or 20% or 30% of gold. >> right. >> it should be -- and you know, poor senator menendez, he's walking around with these gold bars. and if he had bitcoin, it would have been right on -- >> i think they were hidden. i don't think he was carrying them around. >> he'd probably still be -- no problem. >> actually, cleaning up a lot of these old cases about silk road will help. like, i think that helps just sort of cleanse us all of these kind of old sins and we can move on with a clearer idea of bitcoin as being a store of value, and a lot of etf holders, i think, feel that way. also, you know, diversified returns. so, the whole asset class presents a lot of opportunities. >> so, you're a stacker, and you think people ought to keep stacking? >> i think people should really consider with their advisors to add 2 to 5% of bitcoin, and i think as many breadth becomes

available, especially in the united states where breadth is hard -- we're sort of in this hourglass environment where there's so much value, so little bandwidth, and so much demand. the more we can increase the neck of that hourglass, the better for investors. >> andy, thanks. >> thank you. up next, some top stocks to watch as we head toward the eng lln lltrt. stay tuned. we'll be right back. [crowd chanting] they ignored your potential, and mocked your ambition. but it's not the critic who counts. with every swing and block, your game plan never changed. ♪♪ some still call it luck. let them. because you know what it's always been. inevitable. ♪♪

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all right, it's a little more than a half hour to go until the opening bell on wall street. dom chu is here. he's got a look at some of the morning's top premarket movers. >> we'll start with a check on one of the most important computer chip companies in the world that's not nvidia, and that's taiwan semiconductor manufacturing. the stock is up over 3% right now. the u.s.-lilsed shares on just around 700,000 shares of volume. that was following a record high in taiwan trading overnight. analysts at morgan stanley upped their target price on the stock by about 9% ahead of its earnings report next week. taiwan semi, by the way, is closing in on a market value of $1 trillion at this point, so watch tsm shares. now let's mention nvidia, of course, because that stock is up about 0.75% over 4 million shares of volume. this is the world's biggest

computer chip company by market value. it's getting a couple of price target hikes. analysts and teams at ubf and wolf research have upped their target price. they're both citing expected robust demand for nvidia's next gen artificial intelligence chips. we'll end with a check on gilead sciences. 35,000 shares of volume. the biopharma company known for its hiv, hepatitis, and cancer treatments is upgraded by raymond james to an outperform rating with a new $93 target price. they're citing optimism over pipeline drugs targeting hiv and a rare liver inflammatory disease, so those shares are up on that call. now, for more on those calls and others, subscribers can head to cnbc.com/pro and get a bigger picture and story on some of those calls. back over to you guys. >> thanks, dom. good to see you. let's take a very quick final check on the markets this morning. futures are higher. we've picked up steam all

through the morning, especially with the dow, which is now indicated up by just over 70 points above fair value. s&p futures are up by 3%. the nasdaq, up by 3% as well and both the s&p and the nasdaq closed at record highs last friday, so we'll see what this week brings. great to see you this morning. make sure you join us tomorrow. right now, it's time for "squawk on the street." ♪ good monday morning, welcome to "squawk on the street," the band is back. carl quintanilla, jim cramer, david faber, together again at post nine of the new york stock exchange. futures, pretty steady. s&p coming you have its best week since april and that record close friday. big week. powell on the hill, cpi, and the start of earnings season. our road map begins with the market's record run, helped by five of the mag seven. also ahead, paramount has reached a deal to merge with skydance and everything else that goes along with that. and boeing agrees to plead guilty to a criminal charge stem